On September 25, 2023, the Florida Department of Revenue issued a Tax Information Tip announcing a reduction in the state sales tax rate imposed on rentals, leases, or licenses to use real property from 5.5% to 4.5% effective December 1, 2023.
Some examples of real property rentals subject to tax under section 212.031, Florida Statutes, include rentals of commercial office or retail space, warehouses, and self-storage units or mini warehouses.
The sales tax rate imposed is based on the time the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid.
Rental payments made prior to December 1, 2023, for the tenant to occupy the real property on or after December 1, 2023 are subject to the reduced sales tax rate of 4.5% plus any applicable discretionary sales surtax imposed by the county.
Alternately, rental payments made after December 1, 2023, for tenant occupancy of the real property before December 1, 2023 are subject to the 5.5% sales tax rate plus any applicable discretionary surtax imposed by the county.
This sales tax rate reduction on commercial rentals does not apply to the tax rates imposed on parking, motor vehicle storage, boat docking or storage, or aircraft storage or tie-down.
More information can be found online at floridarevenue.com/forms under the Sales and Use Tax dropdown menu or by clicking on the link below.